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I have a fresh installation of magento 1.9.4.0.

I have created Tax Rates for India, in my case I have 2 type of tax rates:

1) If country IN and state MH, CGST : 6% and SGST : 6% So total tax :12%

2) If country IN and state GJ, IGST : 12%

Product Price = 1000 (Inc Tax)

Base price = 880 (Exc Tax)

Expected Result :

Subtotal = 880
Discount = 100
Tax = (880-100)*12% = 93.6
GrandTotal = 873.6

Actual Result :

Subtotal = 880
Discount = 100
Tax = (880-100)*12% = 96.43
GrandTotal = 900

Below is the image for tax setting in magento admin :

enter image description here

Can someone please help with this issue?

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